Dubai Friday, January 07, 2005

Apple, the name behind some of the most iconic tech products in the market, will go full tilt at the Middle East consumer.

Its exclusive Middle East distributor, Arab Business Machine (ABM), will open the UAE's first dedicated Apple Store in one of Dubai's new malls late next month.

A similar concept store opened in Riyadh recently, and will be followed by Kuwait within the next fortnight and Cairo in another two months. Scouting is on for a location in Lebanon.

Until now, Apple's retail sales were primarily overseen by channel partners for the individual markets in the region.

The retail store chain follows closely the increasing consumer demand for Apple's recent line of products such as the iPod, and the Notebook series the iMac and Powerbook.

It is quite a contrast to Apple's dwindling presence in the Middle East during the late 1990s, brought about by an ageing product line-up.

All of that changed dramatically in the last two years, brought on by a slew of new products. Sales of the iPod shot up from nothing to new highs during 2004. This was repeated on the Notebooks as well.

"Going forward, it is our intention to focus on developing Apple's base in the lower end of the tech market in the Middle East," said Elias Abou Rustom, general manager of ABM.

"In the past, we may have not been aggressive enough on the consumer side.

"However, with the success of the iPod, we felt it was time to change that strategy for good.

"Already, we are Apple's most successful independent marketing company on iPod sales. Beginning this year, apart from the iBook and iMac, we will be pushing the eMac into the education market here.

"Our research shows that there is acceptance among Middle East consumers if Apple's retail prices are kept within reach of US street level rates."

ABM had one of its best years during 2004 with a 52 per cent increase in revenue year-on-year.

The retail push should see ABM's split between institutional and retail sales attain a balance. Right now, the former makes up more than 60 per cent of the sales.

"Across the region, we are placing emphasis on developing our base in Kuwait, Oman and Qatar," said Abou Rustom.

"We are in discussions with Apple Inc seeking higher shipments of key products in 2005.

"Given the increasing demand, there should be no issue with pushing more into these markets."

Gulf News